Defence procurement to top $100 bn
The Indian defence industry could be the seventh highest spender in the world with a budget of $36.2 billion (Rs 1,54,800 crore) by 2016, according to a recent Frost & Sullivan report.
By TNN |
MUMBAI: The Indian defence industry could be the seventh highest spender in the world with a budget of $36.2 billion (Rs 1,54,800 crore) by 2016, according to a recent Frost & Sullivan report. The military procurement programme including the MRO (maintenance, repair and overhaul) market is predicted to exceed $100 billion by 2022. This year, the defence industry will import equipment worth an estimated $12 billion, the report said.
The government of India aims to procure 70% of its defence requirements from indegenous sources by 2010. Commodore AJ Singh, naval adviser, High Commission of India said that the Indian Air Force is among the biggest buyers in the international market. The Indian defence industry is undergoing a massive procurement programme with nearly 40 ships to be constructed.
The government of India aims to procure 70% of its defence requirements from indegenous sources by 2010. Commodore AJ Singh, naval adviser, High Commission of India said that the Indian Air Force is among the biggest buyers in the international market. The Indian defence industry is undergoing a massive procurement programme with nearly 40 ships to be constructed.
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Frost & Sullivan has also predicted that the offset potential would reach to $10 billion by 2013. Currently, India imports defence goods from Russia and is also the third largest customer of UK after Saudi Arabia and the USA for defence exports.
Dr Pracheesh Mathur, MD, Raytheon India said, ���Even though the defence industry is trapped in the bureaucratic web, the procurement programme is ambitious and defence is the best industry to invest in.��� He said that the end user in India is very technologically concious.
Some large Indian private sector companies such as Tata Motors have recently started bidding for contracts to make armoured vehicles for the defence sector. L&T has already manufactured WM-18multi-barrel rocket launcher, a beach clearing system, a torpedo tube launching system and Pinaka rocket launchers for the Army. Godrej and Mahindra & Mahindra have also had contracts with the defence industry.
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